jdietz1954 7:27 am on Wednesday, March 30, 2016

$SPX

Morning. Baring my soul. I have the SPX April 15th 2100/2120 BeCS. Sold at 1.20 a day late. Obviously underwater. I probably should have closed it yesterday at the 50% loss mark. I set an alert at 2090 to prod me into a roll which is my plan. I am wondering if closing it or rolling if for 2X as much now is the prudent thing to do? My experience with negative spreads is I get very anxious and make emotional decisions. My big bane which I am working on this year. I know window dressing will continue for another day and there may be dumping come Friday. I know Yellen has sparked a rally but is it enough to push the SPX to 2100 in 2 weeks. Comments welcomed.

Bobbie 7:51 am on Wednesday, March 30, 2016

I have the May5 2125/2150 taken yesterday & I’m concerned with it. I definitely think SPX can move to 2100 in 2 weeks. Looked at the expected move. May help with your decision.
Ramie 8:57 am on Wednesday, March 30, 2016

Resistance/top of the trading range for SPX at 2100. Tomorrow is end of quarter as you note, and it would also be the 3rd day of an up move if that should continue. Lots of reasons to look for even a pullback, even a small/healthy one.
Jeff 9:03 am on Wednesday, March 30, 2016

It’s been a tough uptrend, but the most important thing is to stick by your rules or plan. I have been closing spreads if SPX gets within 20 points of the short strike. I usually wait for some pullback to make the close, and then roll on the next surge upward (and also selling puts aggressively). A few times on this trend I have decided to NOT close the spreads after the breach because we get a pullback and I think it is safe. Every time I’m proven wrong, like today with my short 2070. You need to make your rules and stick to them, and then you’ll be less susceptible to emotion.
elitethink 5:22 pm on Wednesday, March 30, 2016

If i sell a 20 point spread for 1.00, my max exit is 4.00. That way with an iron condor my r:r is 1:1. don’t sweat it, (i know it is hard), but set a line in the sand and stick to it. all while fighting back with put spreads.